According to a senior EU official, European Union countries are facing significant challenges as budget cuts have weakened crucial layers of government responsible for facilitating the transition to a greener and more digital economy.
Elisa Ferreira, the European commissioner for cohesion and reforms, highlighted the detrimental impact of budget reductions, particularly during the eurozone crisis from 2009 to the mid-2010s. These cuts decreased public administration staff and delayed the implementation of essential training and new technologies.
Ferreira emphasized the necessity for public administration to adapt to new demands, such as green budgeting and the utilization of artificial intelligence. However, she noted that many administrations lack the resources to meet these evolving expectations.
Challenges ahead for the permit granting process
While the European Union has introduced new legislation to expedite the approval process for projects promoting clean tech production and securing critical material supplies, public administrations responsible for granting permits may pose a bottleneck.
To address these challenges, the EU has allocated a seven-year fund of 864 million euros ($936.1 million) aimed at helping member states prepare for future challenges and implement necessary reforms. This fund will support initiatives such as training, sharing best practices, and providing project advice and oversight.
The European Commission announced its selection of 170 projects for 2024, with nearly a third dedicated to the green transition and just over a quarter focusing on the digital shift. These projects encompass many initiatives, including plans by Estonia and Lithuania to produce sustainable aviation fuel and support for areas most impacted by the green transition.
Additionally, financial supervisors from across the EU will receive support and training to navigate the risks and opportunities presented by advanced technologies like artificial intelligence in the financial sector.
Elisa Ferreira stressed the importance of investing in strengthening public authorities to effectively address the challenges of green budgeting and digitalization. She clarified that this investment does not necessarily entail hiring additional staff but rather enhancing the capacity and capabilities of existing resources.
As the European Union strives to navigate the complexities of transitioning to a greener and more digital economy, the reinforcement of public administration emerges as a crucial priority. With targeted investments and support, member states can overcome the challenges posed by budget cuts and effectively drive forward the necessary reforms for a sustainable future.
By prioritizing green and digital transition projects and empowering public authorities, the EU aims to pave the way for a resilient and prosperous economy that meets the evolving needs of society while preserving the planet for future generations.
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